Vacuum retailer Godfreys converted 22 stores to franchised outlets in the 2016-17 financial year bringing in to the corporate chest initial franchise fees of $5.3m.

As a result of the franchise conversions the retail chain saw improved sales performance and a reduction in inventory and ongoing CAPEX requirements.

However the rate of conversion is likely to slow in the next financial year as the company assesses stores and potential franchisees, and as a consequence expects lower initial franchise fee contributions.

The full year financials reveal total revenue declined 2.9 per cent to $174.1m, while comparable store sales were down seven per cent.